Germans are divided on their view of cash. While it has become less frequently used for payments in recent years, many still consider it important for themselves and society. According to a Bundesbank survey, 69% of respondents believe it is important to be able to use cash, and 72% consider cash very or somewhat important for society. However, in an article published in the April Monthly Report, the Bundesbank emphasises that the availability and acceptance of cash as a means of payment and store of value can only be secured through the commitment of cash stakeholders and policymakers.

A key decision point is the EU regulatory proposal regarding euro cash as legal tender, which aims to ensure access to and acceptance of euro bank notes and coins across the euro area. The Bundesbank itself plans to strengthen the cash cycle through initiatives coordinated with other stakeholders by launching the „National Cash Forum“ in 2024 and expanding its branch network with four new locations. „Moreover, politics, academia, and society are also invited to engage with the future of cash“, it adds.

According to the Bundesbank survey, nearly two-thirds of the German population expect cash to be used in roughly the same volume (or even more) in the next five years. As a result, most respondents currently do not feel the need for active measures to support cash retention. Potential measures include the removal of fees at ATMs, the obligation to accept cash at retail counters, and ensuring an adequate number of ATMs.

But empirical data, such as a study commissioned by the Bundesbank, shows that with the ongoing decline in cash usage, support measures may become necessary. In 2017, respondents made about three-quarters of their everyday payments in cash, but by 2023, this had dropped to just under half. Cash now accounts for only 26% of private payments by transaction volume, while debit card payments make up 32%.

The study calculated three potential scenarios for cash usage until 2037, and in all cases, the availability and acceptance of cash deteriorates, with its usage continuing to decline. This could trigger a self-reinforcing downward spiral. „In two of the three scenarios, the choice between cash and cashless payment methods would virtually no longer exist“, warns the Bundesbank.

48% of the 2,845 respondents expect that cash will disappear from everyday life in 15 years, while 39% believe it will still be used as it is today. Overall, the Bundesbank concludes that the arguments in favor of cash have more support than those against it, with a „clear desire“ to continue using cash in the future. The most significant advantages cited by respondents were technical reliability, the ability for children to learn money management, and anonymity. Reservations about cash generally relate to illegal activities, such as its use in ATM explosions.